Texas Estates Code 1161.003 – Investments That Meet Standard for Investment
Terms Used In Texas Estates Code 1161.003
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Estate: means a decedent's property, as that property:
(1) exists originally and as the property changes in form by sale, reinvestment, or otherwise;
(2) is augmented by any accretions and other additions to the property, including any property to be distributed to the decedent's representative by the trustee of a trust that terminates on the decedent's death, and substitutions for the property; and
(3) is diminished by any decreases in or distributions from the property. See Texas Estates Code 22.012 - Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Trustee: A person or institution holding and administering property in trust.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
- Ward: means a person for whom a guardian has been appointed. See Texas Estates Code 22.033
- Year: means 12 consecutive months. See Texas Government Code 311.005
A guardian of the estate is considered to have exercised the standard required by Section 1161.002(a) with respect to investing the ward‘s estate if the guardian invests in the following:
(1) bonds or other obligations of the United States;
(2) tax-supported bonds of this state;
(3) except as limited by Sections 1161.004(b) and (c), tax-supported bonds of a county, district, political subdivision, or municipality in this state;
(4) if the payment of the shares or share accounts is insured by the Federal Deposit Insurance Corporation, shares or share accounts of:
(A) a state savings and loan association or savings bank that has its main office or a branch office in this state; or
(B) a federal savings and loan association or savings bank that has its main office or a branch office in this state;
(5) collateral bonds that:
(A) are issued by a company incorporated under the laws of this state that has a paid-in capital of $1 million or more;
(B) are a direct obligation of the company; and
(C) are specifically secured by first mortgage real estate notes or other securities pledged with a trustee;
(6) interest-bearing time deposits that may be withdrawn on or before one year after demand in a bank that does business in this state, if the payment of the time deposits is insured by the Federal Deposit Insurance Corporation; or
(7) an ABLE account established in accordance with the Texas Achieving a Better Life Experience (ABLE) Program under Subchapter J, Chapter 54, Education Code.